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Auto Payment Agreement Template for Australia

A legally binding agreement governed by Australian law that establishes the terms and conditions for automatic recurring payments between a payment service provider and an account holder. The document complies with Australian financial services regulations, privacy laws, and electronic transaction requirements while outlining payment authorization, processing procedures, security measures, and the rights and obligations of all parties involved. It includes provisions for payment scheduling, dispute resolution, and termination procedures, ensuring compliance with the Banking Act 1959 (Cth) and other relevant Australian legislation.

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What is a Auto Payment Agreement?

This Auto Payment Agreement is designed for use in the Australian jurisdiction where businesses need to establish recurring payment arrangements with their customers or other businesses. The document is essential for any organization that processes regular, automated payments and must comply with Australian financial services regulations, including the Banking Act 1959 (Cth), Privacy Act 1988 (Cth), and Electronic Transactions Act 1999 (Cth). It covers critical aspects such as payment authorization, processing terms, security measures, and dispute resolution procedures. The agreement is particularly relevant for subscription services, utility providers, financial institutions, and any business requiring regular payment collection, providing a comprehensive framework that protects both the payment processor and the account holder while ensuring regulatory compliance.

What sections should be included in a Auto Payment Agreement?

1. Parties: Identification of the payer and the payment processor/recipient

2. Background: Context of the agreement and purpose of the auto payment arrangement

3. Definitions: Key terms used throughout the agreement

4. Payment Authorization: Express authorization for automatic payments and scope of the authorization

5. Payment Details: Specification of payment amounts, frequency, and timing

6. Processing Terms: Details of how payments will be processed and timing of processing

7. Security and Privacy: Measures for protecting payment and personal information

8. Representations and Warranties: Statements of fact and promises by both parties

9. Rights and Obligations: Detailed responsibilities of each party

10. Failed Payments: Procedures for handling failed or rejected payments

11. Dispute Resolution: Process for resolving payment disputes or discrepancies

12. Termination: Conditions and process for ending the auto payment arrangement

13. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a Auto Payment Agreement?

1. Service Link: Required when auto payments are linked to specific services or products

2. Business Terms: Include for business-to-business arrangements with specific commercial terms

3. Multiple Account Provisions: Include when customer has multiple payment accounts or beneficiaries

4. International Payments: Required for cross-border payment arrangements

5. Credit Card Terms: Specific terms for credit card-based auto payments

6. Direct Debit Terms: Specific terms for direct debit arrangements

7. Variable Payment Terms: Include when payment amounts may vary

8. Special Security Procedures: For high-value or high-risk payment arrangements

What schedules should be included in a Auto Payment Agreement?

1. Schedule 1 - Payment Schedule: Detailed schedule of payment amounts, dates, and frequency

2. Schedule 2 - Account Details: Banking or payment account information for both parties

3. Schedule 3 - Fee Schedule: Breakdown of any fees associated with the auto payment service

4. Schedule 4 - Security Protocols: Detailed security measures and procedures

5. Appendix A - Authorization Form: Standard form for payment authorization

6. Appendix B - Cancellation Form: Standard form for cancelling auto payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use

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